Be ready for mild power shock

THE MP Central Region Power Distribution Company (MPCRPDC), Bhopal, is learnt to have proposed varying hikes in different categories of power tariffs ? including an increase of 10-20 paise per unit in domestic power charges ? thus enabling it to earn an additional revenue of about Rs 120 crore in the year 2007-08.

THE MP Central Region Power Distribution Company (MPCRPDC), Bhopal, is learnt to have proposed varying hikes in different categories of power tariffs — including an increase of 10-20 paise per unit in domestic power charges – thus enabling it to earn an additional revenue of about Rs 120 crore in the year 2007-08.

The company presented its tariff proposal for the next year to the MP Electricity Regulatory Commission (MPERC) here on Friday.

The company officials have presented the total revenue gap as Rs 640 crore, according to well-informed sources. In its aggregate revenue requirement (ARR) – presented to the MPERC some time back – the MPCRPDC had claimed its revenue gap to be about Rs 563 crore. This gap was reduced by about Rs 67 crore in the company’s revised ARR submitted a few days later, sources said.

Thus, the gap shown by the company in its revised ARR was Rs 496 crore. Besides, the company added Rs 144 crore to it, as expenditure incurred on short-term power purchases in 2006-07.

The company claimed it did not get its allotted share from the Central power generating units on some occasions during 2006-07 forcing it to resort to short-term power purchases from other sources. The MPCRPDC justified the short-term power purchases as necessary to maintain regular power supply in areas of its jurisdiction, the sources said.

Subsequently, the MPCRPDC’s tariff proposal for 2007-08 has shown a revenue gap of about Rs 640 crore. To bridge the gap next year, the company has proposed three ways, sources said.

Firstly, it has demanded a total increase of about Rs 120 crore in tariffs of various power consumer categories. Besides,
it expects to earn revenue of about Rs 114 crore by means of its share from the sale of power from MP next year. Citing examples of an expected increase in power generation in the State from various power generation projects being implemented here, the MPCRPDC expects to earn Rs 114 crore, sources maintained.

Besides, the company has claimed improvement in its efficiency – resulting from decrease in transmission and distribution (T&D) losses, prevention of power theft, and other means – in the next year. That would enable it to earn almost Rs 226 crore in 2007-08, the sources said.

All three ways would enable the company to earn revenue of about Rs 460 crore in 2007-08. The remaining gap of Rs 180 crore would be bridged through regulatory assets – the technicalities of which would be worked out subsequently – the sources informed.

The MPERC has fixed December 26 as the last date for receiving any objections from public on the proposed tariff, sources said. It would subsequently review and examine the tariff proposals of all the three power distribution companies of the state and announce tariffs for 2007-08, sources maintained.